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Amazon plans Pantry grocery service to take on Costco, claims report

updated 07:11 am EST, Fri December 13, 2013

Report claims Pantry launch in 2014 with 2,000-item inventory

Amazon could be going after customers that buy groceries from warehouse clubs and wholesale retailers, according to a report. The online retailer is apparently planning to launch Pantry, a service that will offer the same packaged grocery items typically found in Costco and Sam's Club, such as cleaning supplies and canned goods.

Pantry will launch with approximately 2,000 products, according to sources of USA Today, with Amazon Prime users being the initial target audience. Shoppers will be able to buy products to fill a specifically-sized box, and so long as the package is under a weight limit, Amazon will ship it for a small flat rate.

AmazonFresh, an existing Amazon grocery service
AmazonFresh, an existing Amazon grocery service

Amazon is already dabbling in grocery shopping, with two services providing similar items to customers. Subscribe & Save lets customers automatically receive discounted household goods on a schedule, meanwhile AmazonFresh performs same-day and next-day delivery of fresh food and other items to customers in three areas of the United States. Pantry sounds as if it could be similar in working to Subscribe & Save, with the set weight and size of delivery being an attempt by the company to negate the high delivery cost of the relatively inexpensive goods, though expanding AmazonFresh to more areas will give the retailer a potentially cheaper delivery again.

It is thought that Amazon will be launching Pantry sometime in 2014.

by MacNN Staff



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